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* CBS 2…
It’s an October Surprise for Democratic candidate for governor J.B. Pritzker. A leaked confidential report from the Cook County inspector general found Pritzker engaged in a “scheme to defraud” taxpayers, by using a loophole to avoid paying more than $330,000 in property taxes on a Gold Coast mansion.
The Chicago Sun-Times… report the inspector general recommended Cook County try to recover more than $330,000 in property tax breaks Pritzker received by removing toilets to have the mansion declared uninhabitable.
“The County ultimately fell victim to a scheme to defraud, executed in part through the use of affidavits, and which resulted in the property owner ultimately receiving property tax refunds totaling $132,747.18 for the years 2012, 2013 and 2014, as well as additional tax savings of $198,684.85 for the years 2015 and 2016,” Inspector General Patrick Blanchard stated in a confidential memo […]
Pritzker, however, insisted he obtained property tax breaks through a routine appeal process, and followed all the rules.
The ellipses remove credit given to me for this story. I made it very clear yesterday that this was Tina Sfondeles’ scoop.
* Fox Chicago…
JB Pritzker is insisting he did nothing wrong after the inspector general for Cook County found the candidate for governor committed a “scheme to defraud” tax collectors.
“We sought it with all the rules in place. We knew what the rules — we followed the rules,” Pritzker said.
The inspector general claims the alleged scheme involved tax breaks worth more than $300 thousand dollars.
The inspector general’s report says that affidavits filed on behalf of Pritzker and his family misrepresent the date when toilets were actually removed from his Gold Coast mansion, rendering it “uninhabitable.”
* WLS AM…
“We were in the middle of a renovation project on our house. We decided to stop in the middle of it. Then we sought a reassessment on all our properties. That was a tax deduction that we received, but we no longer receive that reduction.”
Marin: “Do you consider that was a manipulation of the tax system?”
Pritzker: “No, we followed the rules. In fact, so many people seek property tax reassessments because the system is so flawed.”
And now the Rauner campaign says, “This wasn’t a standard appeal as Pritzker claimed. Instead, he lied to voters. It’s clear he doesn’t have the character and integrity to be governor.”
* WGN TV…
Hillary Clinton has campaigned for Democratic Illinois governor candidate J.B. Pritzker during a stop in Chicago.
Clinton joined a round table discussion on leadership Monday with Pritzker, his running mate state Rep. Juliana Stratton and a group of high school women. […]
Pritzker was under fire again for the what a leaked Cook County Inspector General’s report called a scheme to defraud county taxpayers, when his wife ordered toilets be removed from a Gold Coast mansion they owned.
The property was reassessed and deemed uninhabitable. It led to Pritzker getting refunds for several years’ worth of taxes to the tune of about $331,000.
The toilet stuff was way deep into their Hillary story. It didn’t even make it into the story posted online by ABC 7.
posted by Rich Miller
Tuesday, Oct 2, 18 @ 9:10 am
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I said the yesterday- no one cares. Mayor race, Kavanaugh etc
Only folks here thought it was a big deal. It’s just more toilet stories. The voters don’t do nuance and they’ve heard it before.
It didn’t even make Politico this morning.
Comment by Dupage Bard Tuesday, Oct 2, 18 @ 9:16 am
The irony of JB wanting a progressive income tax so billionaires like him pay more. That $330K was a tax shift to people that cannot afford a lawyer to contest their property taxes. Simply put, JB shifted his property tax burden to poor people in a system that was already regressive towards poor people.
Comment by Nagidam Tuesday, Oct 2, 18 @ 9:20 am
At this point, not a thing on earth could move me to not vote for Pritzker.
Comment by Nick Name Tuesday, Oct 2, 18 @ 9:21 am
Sorry meant to say it barely made Politico.
Comment by Dupage Bard Tuesday, Oct 2, 18 @ 9:23 am
It will be interesting to see if there is still a lot of talk about this next week.
I did get a chuckle over Rauner’s comment that Pritzker lied to voters and thus doesn’t possess the character to be Governor. Name me another Governor that has lied to us as much as Rauner has.
Comment by The Dude Abides Tuesday, Oct 2, 18 @ 9:23 am
–It didn’t even make it into the story posted online by ABC 7.==
Maybe if there had been a water-skiing squirrel alleged to be engaged in a “scheme to defraud” it would have been judged newsworthy.
The tax dodge shows that Pritzker wasn’t planning to run for governor back in the day.
If you’re willing to spend $146 million and counting to win the gig, you don’t risk it for $330,000.
By the way, $330K is .2 of one percent of $146 million.
Comment by wordslinger Tuesday, Oct 2, 18 @ 9:25 am
Will this make some noise? Maybe.
The problem, again, is Rauner is so unlikable.
That’s how politics works sometimes. Rauner as a known commodity isn’t likable enough, (maybe), to make this into a political windfall.
The grossly inept and borderline malpractice that is the Pritzker Crew and their own oppo… how fortunate they are (it seems today) that Rauner is so terribly unlikable, “Cavanaugh”, “Trump”, and “October”.
What *is* good is that Rauner is so low, with ads now running with voters asking aloud “what would be different with 4 more years of Rauner”… reinforcing and keeping Rauner down.
I’m befuddled how a campaign spending $207K every 24 hours couldn’t get the info and pay the fines totally $334K+ to stop this.
Pritzker Crew… was doing oppo on yourselves … “optional”?
Rauner has Quincy, no budget, crushed social services and higher ed… and running in a state Clinton won by 16, and where Rauner is 20+ points under water.
Tough to see a 16 point sway, with… with Rauner so unlikable.
This might be too late(?)
We’ll see
Comment by Oswego Willy Tuesday, Oct 2, 18 @ 9:26 am
Keep in mind there would not have been a Day One yesterday if this had been resolved quietly back at Day -200 or whatever it was when this toilet thing first came out. Anybody advising him who didn’t tell him to fix this way back then committed campaign malpractice. Yes, anyone who’s dealt with candidates knows they can have big egos and reject advice, but it should have been given, forcefully.
Comment by Ron Burgundy Tuesday, Oct 2, 18 @ 9:26 am
It’s a real problem for Pritzker, but technically there’s no new information. The removed toilets have been an issue for months. The IG’s rhetoric will certainly be helpful for Rauner, but this doesn’t seem to be the game changer he needs.
Comment by Roman Tuesday, Oct 2, 18 @ 9:27 am
My question remains did JB make the decision to not pay the tax or did someone else decide this for him.
Because if I were that rich I’d have lawyers and accountants making those decisions. I’d just be signing papers.
Comment by Cheryl44 Tuesday, Oct 2, 18 @ 9:28 am
===if this had been resolved quietly back at Day -200===
Um, no. This is an admittedly extreme example, but if you rob a bank and then return all the money, you’re still legally liable for robbing the bank.
Comment by Rich Miller Tuesday, Oct 2, 18 @ 9:31 am
JB and MJM birds of a feather. Instead of helping the resident of Illinois fix a flawed property tax system, they scheme to personally profit off of a it. MJM gets the appeals retainers while JB games the system with the toilets.
Comment by Texas Red Tuesday, Oct 2, 18 @ 9:32 am
@Cheryl44, from the reports, that “someone else” may have been his wife. That would explain why campaign staff didn’t successfully push JB to flush this away months ago. Campaign staff don’t fear their candidate; they do fear the candidate’s spouse.
Comment by Robert the Bruce Tuesday, Oct 2, 18 @ 9:32 am
===The voters don’t do nuance and they’ve heard it before.===
It sure looks like Rauner over-played his hand on the issue. He inundated the tubes with his silly toilet commercials resulting in yesterday’s news finding a softer landing spot.
===Name me another Governor that has lied to us as much as Rauner has.===
To be fair… Rod Blagojevich.
Comment by Ducky LaMoore Tuesday, Oct 2, 18 @ 9:32 am
Rauner ruined the State. We are now all invested in Pritzker by default. So- no one wants to hear about toilets.
Comment by West Sider Tuesday, Oct 2, 18 @ 9:32 am
=My question remains did JB make the decision to not pay the tax or did someone else decide this for him.
Because if I were that rich I’d have lawyers and accountants making those decisions. I’d just be signing papers.=
Pritzker is responsible for his actions regardless if he has people or not.
For a guy with his wealth and seemingly civic mindedness, this is just a stupid thing. No matter how wealthy for some people there is a sense of entitlement that they deserve more. I really hope Pritzker isn’t that kind of person.
=By the way, $330K is .2 of one percent of $146 million.=
Just boggles the mind when you think about it.
Comment by JS Mill Tuesday, Oct 2, 18 @ 9:34 am
–Um, no. This is an admittedly extreme example, but if you rob a bank and then return all the money, you’re still legally liable for robbing the bank.–
OK fair, but if he had issued a mea culpa back then, paid the taxes with penalties and interest, and owned it, there likely wouldn’t have been an investigation and a report put out right before the general election about how “the bank got robbed and who robbed it,” so to speak.
Comment by Ron Burgundy Tuesday, Oct 2, 18 @ 9:39 am
“This wasn’t a standard appeal as Pritzker claimed. Instead, he lied to voters. It’s clear he doesn’t have the character and integrity to be governor.” - this from a guy who paid a lady to lie to us on a campaign advertisement. Please stop Bruce. You are just embarrassing yourself at this point.
Comment by Maestro Tuesday, Oct 2, 18 @ 9:42 am
Well, a weird story maybe — and it adds ammo to Rauner’s ‘everybody’s corrupt except me’ — but frankly, I could care less about this story.
Pritzker’s got my vote. There’s absolutely nothing — nothing — that will change my vote for Pritzker. Nothing.
I mean, if Trump is able to get away with all the corrupt stuff he continues to get away with?
This toilet thing is nothing. Nada.
Teflon Pritzker as far as I’m concerned.
Comment by Bobby T Tuesday, Oct 2, 18 @ 9:44 am
–Because if I were that rich I’d have lawyers and accountants making those decisions. I’d just be signing papers.–
“I’m not in charge?” It’s been done.
Many months ago, Pritzker should have just written checks to the impacted taxing bodies out of an abundance of caution. Again, it’s $330K from a guy who’s already committed $146 million to the race.
Comment by wordslinger Tuesday, Oct 2, 18 @ 9:44 am
For me, on the nuance of getting ahead of this or paying or what it means in the whole “scheme” of things… look how Pritzker and his Crew handled it yesterday.
Political.
Did nothing wrong.
Paying now.
The malpractice of this whole thing… it’s befuddling. Truly.
They couldn’t look at this… way before… try some contrition?
They go after it now… as “politics”?
What exactly goes on for $207K a day? Seriously.
If Rauner was indeed closer, this would be far more dangerous.
How lucky is JB he’s running against the most vulnerable incumbent in all of America.
You can run a mediocre campaign and win…
Comment by Oswego Willy Tuesday, Oct 2, 18 @ 9:46 am
As others have stated, JB was foolish (or too loyal to his subordinates) for not clearing this up before seeking the nomination. At this (late) point, JB should say, “It was an oversight, like Bruce taking multiple homestead exemptions.”
Comment by Jocko Tuesday, Oct 2, 18 @ 9:48 am
Suburbanites and downstaters will see this as more Rahm/Daley/Madigan politics at work. Chicago Democrats see no wrong - so JB will win.
Comment by Justacitizen Tuesday, Oct 2, 18 @ 9:49 am
If JB is elected, we’ll once again get a governor under investigation. Like George Ryan. The investigation will hang around until JB settles, pays fines, so we can move on.
Unlike politics, there’s evidense here. It’s not debatable. He did this. He did that. It was wrong and now we have a fraud investigation.
Can we catch a break? Ever?
Comment by VanillaMan Tuesday, Oct 2, 18 @ 9:52 am
=Suburbanites and downstaters will see this as more Rahm/Daley/Madigan politics at work.=
All of them? I live “downstate” and there is rarely a positive word spoken about Rauner. His goose is cooked pretty much everywhere.
Comment by JS Mill Tuesday, Oct 2, 18 @ 9:52 am
So any response from Pritzker that the Rauner oppo dump put his wife now into the mix?
Most people, when their spouse gets hit, get mad and even.
Let’s see if JB and crew have the courage to run the ad showing Diana Rauner saying what a great man JB is when he saved the Ounce?
Comment by Anonymous Tuesday, Oct 2, 18 @ 9:55 am
This would have been a very effective October surprise if Rauner hadn’t already flooded the airwaves about toilets months ago. Now this will barely register.
But if Rauner wants to go all in on “scheme to defraud”, I’m sure Pritzker is willing to match the pot with “13 dead veterans in Quincy”.
Comment by Dance Band on the Titanic Tuesday, Oct 2, 18 @ 10:00 am
@Vanilla, Your comment about Illinois never seeming to get a break is very much on point. Blago barely beat Paul Vallas in the Primary. Look what we got. Bruce Rauner barely beat Kirk Dillard in the Primary and we get someone arguably worse than Blago. I’m pretty confident in saying that Dillard would have done a solid job. The Democrats felt that to insure victory over Rauner and his great wealth that they’d better get someone who has great wealth too and here we are.
There is still hope though that JB can be a solid competent Governor, which is more than we’ve had in a while.
Comment by The Dude Abides Tuesday, Oct 2, 18 @ 10:02 am
The reason Pritzker didn’t do the right thing is because of all the political excuse-makers rushing to his defense. JB is a giant hot-house orchid that’s never been exposed to the real world. He thinks taxes are for mopes like us. He thinks rules and laws are for poor mopes like you and I. He’s a big man with a full set of paid staffers sheltering him. He’s now a Democratic candidate, keeping himfrom facing the political costs of being a tax fraud.
He’s grown up enough, rich enough and smart enough not to need your boot-licking, fawning and excuse
making. Tough love for Pugsley is what he needs.
Comment by VanillaMan Tuesday, Oct 2, 18 @ 10:02 am
Keep in mind, Illinois voters elected Blago a second time even when it was clear that he was under investigation by the federales.
And Rauner had plenty of nasty business practice stories come out before he won election: nursing home deaths, Medicaid fraud, baby medicine price-gouging, threatening a former female employee and her family….
The coming days will tell whether this moves the needle.
Comment by wordslinger Tuesday, Oct 2, 18 @ 10:03 am
Didn’t Rauner clout his daughter into a magnet school. What poor kid lost thier chance to go to a great school. Where is the Inspector General.
Comment by Gander Tuesday, Oct 2, 18 @ 10:04 am
Awful lot of nuance inserted in the comments here. So much for the voters not interested in nuance stuff. Yet the headlines mostly lead with Scheme to Defraud.
And the IG report being sent confidentially to Democrats, one or more of whom immediately leaked it to the press before the ink was even dry. Wow.
I didn’t know you Democrats also have your version of Ives and Proft in your ranks.
Comment by Louis G Atsaves Tuesday, Oct 2, 18 @ 10:04 am
==So much for the voters not interested in nuance stuff.==
You’re smarter than that. Those that comment on here aren’t your average voter.
Comment by Demoralized Tuesday, Oct 2, 18 @ 10:07 am
–The reason Pritzker didn’t do the right thing is because of all the political excuse-makers rushing to his defense. –
Inside dope from the Pritzker camp from VMan.
Comment by wordslinger Tuesday, Oct 2, 18 @ 10:08 am
One rich guy trying to use the tax code to save money isn’t a story. A failed mega-millionaire whining that his opponent having inherited his billions doesn’t move me. The only good guy here is Rich, trying to make sure that Tina Sfondeles gets credit for the story. Kudos to Rich for being a stand up guy. This is another example of why we admire and trust you so much. Gravitas can’t be purchased or given, it’s earned.
Comment by Trapped in the 'burbs Tuesday, Oct 2, 18 @ 10:11 am
How is this “Day One” - Rauner’s been running toilet ads since spring.
Rauner bots have been making toilet comments since as long as any online comment section reader can remember.
That an already discussed topic is no longer confidential is not new news. It clearly wasn’t a confidential topic to begin with.
If it even gives Rauner a bump I’d be surprised, but it ain’t gonna give him a winnable bump.
Comment by Anono Tuesday, Oct 2, 18 @ 10:14 am
Agree that this topic does not change anything. Pritzker policies are what matters and what I am voting for.
Comment by Illinois Resident Tuesday, Oct 2, 18 @ 10:16 am
Honestly, our choices have been mush for many years. Even primary candidates have been unappealing.
I voted for Dillard in the primary, and would have done so again in the general, but I had to settle for Quinn because I could see Rauner was unsuitable. I voted for Blago the first time when he ran as a reformer, but JBT the second time when it was clear he was not.
Any honest government is going to get my vote, but once again we have no really good choice there. I’ll have to settle for throwing one bum out, and hoping without much hope that the next is better. It would be really hard to be worse, but not impossible.
Comment by Jibba Tuesday, Oct 2, 18 @ 10:19 am
I don’t blame the crew for not knowing oppo. Who knows how much (or little) access JB Pritzker allowed for self-research. I do blame the crew for their awful, arrogant, out-of-touch responses. In the end though, the crew will have done a good enough job to pull off a win. What I worry about is how JB’s character and respect for rules plays out while he holds the highest office in the state. I hope JB appoints a strong, ethical, law-abiding chief of staff to help save him from himself.
Comment by The Most Anonymous Tuesday, Oct 2, 18 @ 10:20 am
All of the stories seem to be notable for one thing: a single property tax attorney who agrees with the IG that what Mr. Pritzker did was illegal. You would have thought for all of the time they had, the Raunwr campaign could have produced one single, respected property tax attorney willing to say “it is illegal to remove toilets from your property just so you can qualify for a tax break.”
Did I miss that somewhere?
Because absent that, all we seem to have is the IG’s assertion that a false affidavit was filed which, as Rich reported yesterday, is not true.
Again, if someone can show where removing toilets is illegal, I am all ears and eyes. Have not seen that yet.
Comment by Thomas Paine Tuesday, Oct 2, 18 @ 10:24 am
Wasn’t Daniel Biss and his supporters raked through the coals on this blog for having a press conference in front of JB’s mansion like this?
Comment by Anonymous Tuesday, Oct 2, 18 @ 10:24 am
Toiletgate is already pretty baked into this race. It was an issue in the primary and Rauner has pushed quite a few ratings points on the subject with attack ads.
Pat Blanchard ain’t exactly Pat Fitzgerald…and speaking of the Cook County Inspector General, has he ever gotten around to finishing his nearly two year old probe of Toni Preckwinkle’s abandoned county SUV? I think there might be some renewed interest in the coming months:
https://www.google.com/amp/s/chicago.suntimes.com/opinion/editorial-toni-preckwinkle-and-the-case-of-the-abandoned-suv/amp/
Comment by Tony Tuesday, Oct 2, 18 @ 10:26 am
===I don’t blame the crew for not knowing oppo.===
It’s their job to know it. It’s their job to comprehend and relay to the candidate vulnerabilities.
This isn’t some “thousands of hours of reasearch” thingy…
They applied for the tax break. You look into what was asked. See if it makes sense. See where others can (and will) go after it. Correct what you should (and can).
The responses show me… not a soul took any of this seriously, until it got serious… or they flat out missed it, not doing the simplest of due dilligence.
That’s what you get for $207K a day… every day?
Comment by Oswego Willy Tuesday, Oct 2, 18 @ 10:26 am
JB handled this pretty well. I highly doubt people are going to vote on this issue or even really care. If you looked at how much JB has paid in taxes to Illinois over the years : the amount would be staggering. Wealthy people pay the bills . JB has paid more than his fair share to the state of Illinois … That’s a fact.
Comment by Steve Tuesday, Oct 2, 18 @ 10:29 am
Mr/Ms
“Suburbanites and downstaters will see this as more….”
Bet they see the scandals at Quincy and poisonin’ in Willowbrook too.
Comment by Annonin' Tuesday, Oct 2, 18 @ 10:36 am
=== - Steve - Tuesday, Oct 2, 18 @ 10:29 am:
JB has paid more than his fair share to the state of Illinois … That’s a fact. ===
Not according to JB.
Comment by Cadillac Tuesday, Oct 2, 18 @ 10:39 am
This could be a sci fi movie, Rise of the Pritzkerbots. It’s OK, you know, to say this won’t change your vote while at the same time acknowledging this is bad and he should fix it. Because it is, and he should.
Comment by Ron Burgundy Tuesday, Oct 2, 18 @ 10:39 am
- Cadillac -
I know JB tries to downplay this but … if you figured how much he’s paid in sales taxes , incomes taxes, and property taxes over the years: it would be more than many could imagine.
Comment by Steve Tuesday, Oct 2, 18 @ 10:43 am
- Steve -
I get it, but most of his campaign is based on making the wealthy pay MORE in taxes. He can’t have it both ways.
Comment by Cadillac Tuesday, Oct 2, 18 @ 10:46 am
Steve- I guess you have a failing memory. JB didn’t report much in the way of taxable income on his disclosures especially for a billionaire. Rauner pays substantially more in Illinois income tax compared to the JB. No way to put lipstick on this pig. It demonstrates the kind of let the little people pay tax instead of me like with Mrs Helmsley
Comment by Sue Tuesday, Oct 2, 18 @ 10:53 am
–How is this “Day One” - Rauner’s been running toilet ads since spring.–
“Scheme to defraud” from the inspector general turns up the heat quite a bit. Not the sort of thing any politician wants to hear in October.
Comment by wordslinger Tuesday, Oct 2, 18 @ 10:58 am
It’s actually much worse then just getting a tax break- the Pritzkers submitted FALSE affidavits in support of their tax appeal. This is the kind of thing ordinary people get prosecuted for. It’s more then a tax issue it is a crime as alleged in the IG report
Comment by Sue Tuesday, Oct 2, 18 @ 11:27 am
I would not assume the toilets are baked into the poll.
A lot of people have not been paying attention to Pritzker for a long time.
I also would not assume that folks will never vote for Rauner either.
Hillary Clinton assumed a lot in 2016.
Winners assume nothing, leave nothing to chance.
Where are the closers? Who is tasked with putting out this dumpster fire? You have got to have one person whose top priority is to deal with the toilets, and it does not appear that person exists.
Legally, I think there is nothing here. But that does not mean it still is not a political liability.
Comment by Thomas Paine Tuesday, Oct 2, 18 @ 11:48 am
This is now so much more than a tax issue. It’s tax fraud and it will swing votes south of I-80.
Comment by Downstate Dem Tuesday, Oct 2, 18 @ 12:02 pm
I’ve just read the report, and frankly I find it to be thinner gruel than I was expecting.
Much of the “fraud” issue relates to exactly how the affidavits were written. The house was certainly uninhabited from 2012 through 2017, but whether it was “uninhabitable” or not seems to be a judgment call that Cook County made based on a number of factors, not just the toilets, but including structural deficiencies such as failing stairs, mold, water damage, and “undergoing a rehab”, all of which apparently apply and can justify the lower tax rate. I encourage everyone to read it for themselves.
It still looks bad for Pritzker, but “fraud” seems overblown.
Comment by Jibba Tuesday, Oct 2, 18 @ 1:54 pm
–It’s tax fraud and it will swing votes south of I-80.–
To whom?
Comment by wordslinger Tuesday, Oct 2, 18 @ 6:03 pm